1. " BUT they need MONEY amd lots of it to drill further and to do feasability and bankable feasability and to develop + its gonna be an underground mining operation which is more expensive.
So lets assume approx 300 million shares (almost 4 times) and also including options".
Comment: You have overlooked the increase in share price by the time cash is needed. Not long ago, the share price was 50 cents and by the time big cash is needed, the share price will be much higher, say $4-$6?
I don't want to quote a fixed share price but less than doubling the present capital base will be more than sufficient to cope with capital expenditure, IMHO.
Also, some of the cash will be supplied by the Banks, no doubt.
I did mention that the Insitu value is AUS$862 per tonne. That is the highest I have come across for a long time. That means: 1. Little ore tonnage is needed to get a lot of zinc, copper and silver. 2. Cost per unit of recoverable value is very low. It is somewhat immaterial if that cost is $30 or $60 per tonne of ore if the Insitu value is AUS$862:
2. I have suggested that UDC holders trade in their shares for TRO shares as they will get about 4.6 TRO shares for one UDC share:
Oct 2: "And if I had CDU, I would sell it. After all, one would get 4.6 TRO shares for one CDU share and TRO stock is preferred by me anyway".
It so happens that because TRO is now $1.01 and CDU is $3.76, one can't get 4.6 TRO shares for one CDU share but 3.72!
And the longer the UDC holders wait with the conversion, the less TRO shares they are going to get IMHO.
3. Current value of TRO shares. I want to add another project, only mentioned yesterday by me. It is the NW Woodlawn JV. It also has a good zinc content and is a continuation of the Woodlawn Project. Hence the Jorc assessment of 10.1 mill tonnes of ore reported for Underground Woodlawn has expanded but this stand alone expansion needs more drilling.
As mentioned, TRO also has the valuable Lewis Pond and the 10 mill or so zinc tailings. A successful mining stock has several pricings depending on progress. It has jorc assessments for both Woodlawn underground and Lewis Ponds. These show a high zinc, copper and silver content and a considerable tonnage. Zinc is in very short supply also. It is obvious to the informed reader that the current share price is too low.
Because TRO was underrated for a long time, the share price rises from now on will be somewhat erratic, I think as it will try to cope with on the one hand the heavy demand and on the other, technical demands, although the fundamentals are extremely good IMHO.
I don't believe that a current price of $3.50 is too high with further upward adjustments as news becomes available. However, the market decides. The next major step will be the pre-feasibility study of Woodlawn in the first quarter of 2007. Meanwhile, drilling is continuing.
Gerry Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.
TRO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
